Cash-strapped Lordstown may stop Endurance truck production (updated)

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04/05/2023 15:04

(Adds background on bankruptcy warning in paragraph 2, earnings
details in paragraph 6 and 7, share movement in paragraph 8)
       May 4 (Reuters) - Lordstown Motors  RIDE.O  reported a
steep fall in its cash reserves on Thursday and said it might
have to stop making its Endurance electric pickup truck in the
near future unless it finds a partner. 
    The remarks come days after the cash-strapped EV startup
said it might be forced to file for bankruptcy, citing
uncertainty over a $170 million investment deal with its major
shareholder Foxconn  2317.TW .
    Lordstown said on Thursday it was in talks with the
Taiwanese company but they were yet to reach an agreement. 
    The dispute is a fresh setback for a company with a
dwindling cash balance and production challenges. Lordstown
resumed production of Endurance in March after a pause in
February to address quality issues. 
    It said in February that it had made only 37 trucks for sale
and recalled 19 vehicles delivered to customers or being used
internally.
    Net loss ballooned to $171.1 million in the quarter ended
March 31, from a loss of $89.6 million a year earlier. 
    The company had cash and cash equivalents of $108.1 million
as of March 31, down from $203.6 million a year earlier.
    Shares were little changed, having hit a record low on
Monday.
        

 (Reporting by Tiyashi Datta in Bengaluru; Editing by Anil
D'Silva)
 ((tiyashi.datta@thomsonreuters.com;))